What is Low Inventory?

Low inventory in real estate is when the number of homes for sale is much lower than the strong buyer demand. As a result, homeowners that are ready to sell have a significant advantage. Lower inventory happens in a Seller’s Market, in less popular seasons to move - like winter, and when prices are high. But, it can be good for homeowners. Here are three ways that low inventory will set you up for a win when you sell.

1. Higher Prices

With so many more buyers in the market than homes available for sale, homebuyers are frequently getting into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this certainly works to your advantage, potentially netting you more for your house when you close the deal.

2. Greater Return on Your Investment

Rising prices mean homes are also gaining value, which increases the equity you have in your home.

This year-over-year growth in equity gives you the ability to sell your house and then put that money toward a down payment on your next home, or to keep it as extra savings.

3. Better Terms

In a seller’s market you’re in the driver’s seat if you make a move. You have the power to sell on your terms, and buyers are more likely to work with you if it means they can finally land their dream home.

So, is low housing inventory a big deal?

Yes, especially if you want to sell on your terms. Moving now while inventory is so low is key to maximizing your opportunities.

There are pluses and minuses to any market. Research positives and negatives with your Realtor to decided what options are best for you.